By Phiwa Sikhondze
In the dynamic financial landscape of Eswatini, First Finance has maintained its position as the market leader in loans and advances, according to the latest Financial Services Regulatory Authority (FSRA) Quarterly Statistical Bulletin for Q3 2023.
The credit institution has demonstrated robust growth, with a commanding 29.77% market share in loans and advances, outpacing competitors such as Letshego and Select, which hold 24.32% and 23.15% respectively.
Despite fluctuations in income from lending and administration fees, First Finance has shown resilience with an overall net income increase of 20.20% every year. This performance is indicative of the institution’s ability to navigate the financial year successfully, adding value to its business despite short-term challenges.
The credit institutions market in Eswatini remains highly concentrated, with First Finance and Select jointly holding 61.28% of the total market share. The industry’s competitive landscape is further characterized by a high Herfindahl Hirschman Index (HHI) score of 2671, confirming the dominance of a few larger players in the market.
The credit institutions’ assets have grown by 6.97% year-on-year and 4.00% quarter-on-quarter, reaching E4.45 billion. This growth is largely due to a significant 174.45% increase in investments in subsidiaries and a 50.78% rise in short-term loans and advances. On the quarterly front, the growth was propelled by a 98.27% increase in current assets under trade and other receivables, along with a 36.23% increase in short-term loans and advances.
First Finance’s sustained leadership in loans and advances is a testament to its strategic positioning and commitment to providing financial solutions that resonate with the needs of its customers. As the sector continues to evolve, First Finance’s market presence is expected to influence the trajectory of Eswatini’s financial services industry significantly.